Customer and Business Analytics

Chapter 6

Lift Charts

Lift charts (Barry and Linoff, 1997) are a graphical tool that both indicate the relative predictive power of different possible candidate models, and allow managers to quickly apply an estimated predictive model in order to address specific managerial questions.

This chapter describes how lift charts are created and how they are used to profitably target customers in direct marketing applications. To make the description of how lift charts are created concrete, this note makes use of an example based on a random sample of 50 donors from the Canadian Charitable Society data set (CCS in the BCA data library) and the MixedCCS2 logistic regression model that is developed in the logistic regression tutorial in Chapter 5. The ...